China's Chipmakers Boost R&D, Surpassing US Investment Ratios
Rising R&D Investment in Chinese Chip Designers
Chinese chip designers are showing a significant commitment to research and development (R&D), with some allocating up to half of their revenue to innovation, far exceeding the levels seen among their US counterparts. This trend reflects Beijing's broader push for technological self-reliance, especially as the artificial intelligence (AI) sector experiences rapid growth.
Moore Threads, based in Beijing, spent 50% of its revenue on R&D during the first quarter of 2026, while MetaX, located in Shanghai, allocated 45% of its revenue to similar efforts during the same period. These figures stand in stark contrast to the typical R&D spending of US-based chipmakers like AMD and Intel, which have historically invested between 20% and 30% of their revenue on research and development.
Nvidia, another major player in the semiconductor industry, saw a dramatic decline in its R&D spending ratio, dropping from 27.2% in 2022 to 8.6% in 2025. This decrease was attributed to a surge in revenue, which reached $215.9 billion for the year ending January 25, 2026, driven by high demand for advanced AI chips.
Despite these higher R&D ratios, Chinese chip designers still lag behind their US counterparts in absolute R&D spending. In 2026, Nvidia spent $18.5 billion on R&D, while AMD and Intel spent $8 billion and $13.8 billion respectively. In comparison, MetaX spent 1 billion yuan (approximately $146 million), and Moore Threads spent 1.3 billion yuan in 2025.
Growth in R&D Spending Among Chinese Chipmakers
The R&D spending by Chinese chipmakers has continued to grow, highlighting their efforts to close the gap with US competitors. Moore Threads reported a 50% year-on-year increase in R&D expenses, reaching 369 million yuan in the first quarter of 2026. Meanwhile, MetaX saw a 16.3% rise in R&D spending, reaching 253 million yuan over the same period.
This trend is expected to continue as Chinese companies scale up their operations and revenues grow. Established domestic chip designers, such as Beijing-based Cambricon, are already showing signs of this convergence. Cambricon, founded four years earlier than MetaX and Moore Threads, spent 11.2% of its revenue on R&D in the first quarter of 2026, down from 24.5% in the same period the previous year. This decline in the R&D ratio coincided with strong top-line growth, as Cambricon reported a 160% increase in revenue to 2.9 billion yuan and an 185% jump in profits to 1 billion yuan.
The company credited its performance to a sustained surge in demand for computing power within the AI industry. Cambricon’s success marks a significant milestone, as it achieved its first full-year profit in 2025 since its 2020 listing.
Emerging Players in the Chinese Semiconductor Market
MetaX, established by former AMD employees in 2020, made its debut on Shanghai's Star Market in December 2025, just weeks after Moore Threads, which was founded in the same year by Zhang Jianzhong, a former manager at Nvidia in China.
These developments highlight the growing influence of Chinese chip designers in the global semiconductor landscape. As they continue to invest heavily in R&D and expand their market presence, they are positioning themselves as key players in the ongoing race for technological leadership.
